Market review: this week, Shenwan daily chemical products industry index rose by 3.24% as a whole, outperforming Shanghai and Shenzhen 300 index and Shenwan level chemical industry by 0.10% and 2.82% respectively. 58.33% of the stocks in the industry recorded positive returns, namely Nanjing Cosmos Chemical Co.Ltd(300856) (15.28%), Yunnan Botanee Bio-Technology Group Co.Ltd(300957) (9.24%), Guangdong Marubi Biotechnology Co.Ltd(603983) (5.35%), Proya Cosmetics Co.Ltd(603605) (4.72%), Liuzhou Liangmianzhen Co.Ltd(600249) (4.22%), Syoung Group Co.Ltd(300740) (2.37%) and Mingchen Health Co.Ltd(002919) (2.03%).
Key industry news: (1) the State Food and Drug Administration stressed that toys should not be used as children's cosmetics: at present, some children's dressing table including eye shadow, blush, lipstick, nail polish and so on. Toys are very popular in the market. In fact, many of these products are produced by toy manufacturers and are only used for painting dolls and other toys, which are not managed as cosmetics. There are some potential safety hazards for children to misuse such toys as cosmetics. To accurately distinguish between cosmetics and toys. (2) Guangdong Drug Administration organized the second round of large-scale flight inspection of cosmetics manufacturers: Recently, Guangdong Drug Administration organized more than 200 people into 25 groups to carry out the second round of large-scale flight inspection of high-risk cosmetics manufacturers throughout the province, focusing on production, including specialization High risk manufacturers, including cosmetics and children's cosmetics, carry out flight inspection. (3) "377" general cosmetics are collectively cleared and removed from the shelves: shortly after Qingyan's "377 is not allowed to be filed? The response is coming", the official website of Guangzhou market supervision and Administration Bureau (Intellectual Property Office) issued a document again, confirming that "377 cannot be used for the filing of general cosmetics". At the same time, it is also circulating in the industry that the State Food and Drug Administration will investigate and deal with "377" General cosmetics news. Or affected by this, green eyes observed that tiktok, jitter, Sina micro-blog and other social media, many platforms users released information about the "377" ingredients of ordinary cosmetics products shelves and clearance.
Industry perspective: in recent years, the market scale of efficacy skin care products in China has been increasing. At the same time, the per capita consumption is low and the market potential is huge. In the short term, international skin care brands still have some pressure on domestic products, but in the medium and long term, domestic brands are accelerating their rise, the overall brand concept of domestic products is constantly strengthening, and China's efficacy skin care market is expected to run out of the industrial giant. It is suggested to focus on: [ Yunnan Botanee Bio-Technology Group Co.Ltd(300957) (300957)], [ Lushang Health Industry Development Co.Ltd(600223) (600223)]. In addition, the prosperity of China's sunscreen market is high, and the new regulations of the cosmetics industry are good for the production of raw materials. It is suggested to focus on: China National Chemical Engineering Co.Ltd(601117) new giant of sunscreen production [ Nanjing Cosmos Chemical Co.Ltd(300856) (300856)].
Risk warning: covid-19 epidemic situation continues and repeats; Risk of seasonal fluctuations in sales; Risk of intensified industry competition; Raw material price fluctuation risk; Risk of research and development of new products and technologies; Risk of product quality control; The risk that the expansion of new channels is less than expected.
